Good morning, traders!
The S&P 500 ($SPY) is trading above Friday’s close. Let’s get into it…
U.S. stock futures start the week on a positive note, with investors keen on building upon the recent success of major indices. Futures linked to the S&P 500, showed a promising increase of 0.4%, signaling an optimistic outlook. This upward trend followed the S&P 500’s achievement of an all-time high on the previous Friday. Complementing this surge, Nasdaq 100 futures rose by 0.7%, while Dow Jones Industrial Average futures climbed by 96 points, equivalent to a 0.3% increase. The stock market’s rebound is notable, especially after a period of fluctuation earlier in the week, culminating in a significant leap for the S&P 500, breaking its previous records from January 2022.
The revival in the stock market has been largely fueled by impressive performances in the technology sector. This segment stood out on Friday with a 2.35% gain, contributing to a 4% increase over the week. The Dow Jones and the Nasdaq Composite also closed higher, with all three major indexes showing a positive trend for 2024 so far. Investors are now closely watching the U.S. Federal Reserve’s policies, particularly interested in the possibility of a ‘soft landing’ where the economy is carefully decelerated without tipping into a recession. Hopes are high for a series of interest rate cuts starting in March, though there is some uncertainty about the realization of these expectations.
As the week progresses, investors are gearing up for a series of crucial economic reports, including data on gross domestic product (GDP) and personal consumption expenditures. These reports are expected to provide valuable insights into the direction of central bank policies. Additionally, there is a growing buzz around the potential of artificial intelligence (AI) in boosting technology stocks. This enthusiasm is underpinned by the anticipation of forthcoming earnings reports from prominent tech companies like Netflix and Tesla, which could set the tone for market movements in the short term.
On the corporate front, Boeing is facing new challenges as the FAA has recommended checks on certain 737 jets, while Archer-Daniels-Midland’s stock dipped following the company placing its CFO on leave and reducing its earnings forecast amidst an ongoing probe. Meanwhile, Federal Reserve officials are in a quiet period ahead of their next meeting on January 30. Investors are keenly awaiting readings on GDP and the Fed’s preferred inflation gauge, which are expected to shed light on the ongoing debate about the timing of interest rate cuts. These factors combined paint a picture of cautious optimism and heightened vigilance in the stock market as it navigates through various economic and corporate developments.
Monday Economic Events:
Leading Indicators 10:00am ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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